ASIC obtained orders on 21 October 2021, appointing receivers to, and an injunction against, A One Multi Services Pty Ltd (AOMS) which was suspected to be engaging in unlawful activity. The Court appointed receivers John Ross Lindholm and Timothy James Michael (who was subsequently replaced by William Colwell) (Receivers) to manage AOMS and to preserve any assets for the benefit of creditors, which included investors in AOMS.
The receiverships ended on 7 August 2024, when the Federal Court made orders winding up AOMS and appointing Michael McCann and Graham Killer of Grant Thornton as joint and several liquidators.
On 23 May 2023, the Receivers filed an application with the Court seeking:
- approval for the Receivers' remuneration from 1 June 2022 to 30 April 2023, and an order that the amount of the Receivers' remuneration be recovered from the property of AOMS, and
- an indemnity from ASIC to cover any shortfall in the monies available from the assets of AOMS to pay the Receivers' remuneration and disbursements incurred during the entirety of the receivership.
The Court:
- approved the Receivers' remuneration and ordered that the Receivers be entitled to recover that sum from the property of AOMS, and
- dismissed the Receivers' application for an indemnity against ASIC.
The Court stated that 'The receivers were aware of the terms of the appointment and of the orders which ASIC intended to seek in relation to the indemnity from the defendants' assets, and they agreed to the appointment on that basis. They were aware of the risks inherent in the appointment and also of the likelihood, as the receivership progressed, that they would be unable to realise sufficient assets to cover their expenses'.
The Court held that there is no implied obligation for a person seeking to appoint a receiver to assets of a third party to indemnify the receiver for their costs. The Court also noted that it is a matter for receivers, prior to accepting an appointment, to make determinations about whether or not accepting an appointment will be financially viable for them.
